WSJ story on CDMA iPhone captures attention of Wall Street traders

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WSJ story on CDMA iPhone captures attention of Wall Street traders
Although rumors of a CDMA version of the iPhone has been spread before, the fact that this time the story was started by a Wall Street Journal story seems to have led some gravity to it. And nothing gets Wall Street traders running for their "Buy" tickets more than a good story in the Journal. The possibliity of a CDMA iPhone model was the top story on Wall Street on Tuesday. Among the most obviously affected firms is Verizon Wireless. Verizon uses the CDMA technology, and with the largest footprint for 3G coverage in the U.S. along with what many consider the best 3G service in the country, Big Red should certainly benefit by offering an iPhone. For years, Verizon customers have been asking for the iPhone and it has only been recently with the launch of the Android powered Motorola DROID, that the carrier has had a unit to sell that is comparable to the Apple handset. The stock rose over 2.5% on Tuesday to 31.23 as a result of the story.

Another big winner would be Apple itself. While limiting itself to AT&T's network since the launch of the phone, Apple has had to spend time defending AT&T's spotty coverage and dropped calls. By expanding its sales channels to other carrier's, it can only lead to more iPhones in people's hands. And even those who now own the device will have to buy a CDMA model if they want to switch to Verizon. Apple's stock made an all-time high at 237.48 before closing up 1.5% at 235.85. Besides Verizon, Sprint is another CDMA carrier that could benefit from the new model. Sprint shares rose to 3.82 for a gain of 3 cents. Chip maker Qualcomm could make more money from a CDMA iPhone and from another rumored model mentioned in the WSJ article that would use a faster processor. Qualcomm's 1GHz Snapdragon processor has been the chip of choice for newer, high powered cellphones. The stock gained .9% to 42.13.

The one big loser in the scenario? AT&T. Yes, losing some customers might take some of the pressure off its overworked pipelines. But AT&T used its exclusive period with the iPhone to make a strong association with the phone. When you thought of the iPhone, you thought of AT&T, which lost 2.11% to 25.95. Without the exclusive iPhone deal, AT&T will have to challenge Verizon and the other carriers through its network and its cellphone lineup. In both of those departments, AT&T comes up short against Big Red and some of the other carriers.

source: YahooFinance



1. ajac09

Posts: 1482; Member since: Sep 30, 2009


2. droidman

Posts: 106; Member since: Mar 17, 2010

WHO CARES!!!!!!!!!!!!!!!!!!!!!!!!!!!!

3. Sureal

Posts: 38; Member since: Jan 31, 2010

everyone who has steve jobs junk halfway down their throat and wants good coverage

4. omarc26

Posts: 360; Member since: Dec 05, 2009

lolz yea who caRES !

13. YouLostTheGame

Posts: 441; Member since: Dec 11, 2008

Two of you obviously did; enough to post your own bullshit opinion...

5. Ray

Posts: 62; Member since: Apr 30, 2009

NO one cares..its just the iphone..

6. theman10

Posts: 93; Member since: May 16, 2009

I care!!!

7. taco50

Posts: 5506; Member since: Oct 08, 2009

All you losers that commented care ha ha. You took the time to read the article and comment.

8. droidman

Posts: 106; Member since: Mar 17, 2010

What does 50 stand for how many times you had your taco stuffed by Steve jobs on this site they post shit like this so we can say who cares!!!!!!!!!!!!!

9. phone333

Posts: 331; Member since: Feb 04, 2009

If they make a CDMA iphone without long term contract to VZW. Sprint will propably get it too sometimes soon.

10. JeffdaBeat unregistered

You know what? I never thought of that. I mean, if AT&T doesn't have the exclusive anymore and they make a CDMA version of it, why not just dish it out to all the carriers? Makes sense right? In that case, I might want to sign up with Sprint again. Having an iPhone for $69.99 for everything? With Verizon or AT&T, you get the same thing for $89.99. At least with Sprint, you get the same speed internet.

11. Sureal

Posts: 38; Member since: Jan 31, 2010

except that sprints is not the same, its unlimited to cell phones, not landlines

12. InstinctDemon

Posts: 74; Member since: Nov 09, 2009

how many people nowadays use landlines, except for businesses and old people?

14. YouLostTheGame

Posts: 441; Member since: Dec 11, 2008

That all sounds nice, but if enough people sign up for Sprint's cheaper "everything" plan, Sprint will have to up the pricing at some point to bring the balance of supply and demand back into harmony. So in theory your idea is nice, but in the real world...not so much.

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